A group with facilities spread across several banks has often never stepped back to ask how its overall debt should be structured. The usual question is how to secure the next facility. Each bank quotes different covenants and pricing, so compare full terms, not the headline rate.

This sits above bank financing, Islamic finance and sukuk work. It helps decide the mix and structure across all three instead of optimizing one facility in isolation.

Why the overall structure matters

A company that approaches financing facility by facility, without a coordinated strategy, often ends up with a patchwork of covenants, maturities and lender relationships. That creates refinancing risk and administrative complexity that nobody chose deliberately.

What a debt strategy considers

It looks at the mix of conventional and Islamic financing given the company's own preferences and each lender's terms. It also looks at a maturity profile matched to the assets or cash flows being financed, and a covenant structure that leaves operating flexibility.

A hypothetical example

Imagine a holding company whose trading arm and manufacturing subsidiary were each financed separately, with different banks, over time. Each facility carries its own covenants and maturities, and nobody has compared them at group level.

Covenants across facilities

Where each entity negotiated its own covenants, a breach under one facility can trigger a default under another, depending on the cross-default terms. Reading the facilities together shows where these links sit before a problem tests them.

What the engagement delivers

A structured review of existing debt across the group and a strategy for future financing decisions. It includes refinancing opportunities where current terms no longer reflect the company's credit profile since the facilities were arranged.

A strategy that survives leadership changes

A debt strategy that exists only in one person's head disappears when that person moves on. Documenting the strategy and its rationale lets a new CFO or finance director pick up the reasoning instead of starting from scratch.

Timing the review

The review works best well ahead of a major renewal or new financing need. A review done under deadline pressure leaves less room to negotiate better terms than one done with lead time.